Question

A property management group is interested in diversifying its company to operate properties for low-income housing, but the group members are nervous about the impact on the brand of high-end apartment developments where they have been operating. What strategy should the property management group use to diversify but keep control of both divisions?

Answer 1

Options:a. Unrelated diversification b. Related diversification c. Internal new venture d. Joint.

Answer:b. Related diversification

Explanation:Related diversification is a system of diversification where a business Organisation diversifies its operations into product lines or brands that are similar to what it is already Manufacturing or marketing.

The property management company has already been involved in property management,but in this case it is for High income earners,since it is now interested and wants to diversify to property management for low income earners,this approach to diversify is called RELATED DIVERSIFICATION.